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[Editor’s note: It is good to remember that because many places, such as many parts of India, are behind in development, they are able to develop green infrastructure at a point before more damage is done. This is the one blessing of underdeveloped countries. As they play catchup in development, they can start more originally with green development.]

By RMI India

Pursuing low-carbon development is central to India’s Paris Agreement climate goals. In this pursuit, net-zero energy buildings (NZEBs) and electric vehicles (EVs) are the two high-leverage areas. The ability to deliver vast emissions reductions across rural and urban settings has brought NZEBs and EVs to the center of the climate change mitigation agenda. In the Indian context, vehicles and homes also have the distinction of being the two most important purchases consumers make.

Once purchased, assets such as gasoline-powered cars and energy-guzzling homes can be hard for consumers to change, thereby locking in emissions for several decades. Getting it right the first time thus proves especially important.

Lower operational costs for adopters are one of the key advantages of both EVs and NZEBs. However, the upfront cost of both NZEBs and EVs remains a barrier, stalling mass adoption. Price-conscious Indian consumers naturally ask: Who will pay for the gap between conventional and greener alternatives?

Central and state subsidies are already playing a role in bridging the cost premium between vehicles running on gas/diesel and EVs. Buildings certified under various rating programs such as the Indian Green Building Council (IGBC) and Green Rating for Integrated Habitat Assessment (GRIHA) are increasingly being allocated incentives by different government entities. In both cases, this government assistance has helped create momentum. However, there exists an oft-overlooked opportunity to reduce the cost premium and improve the attractiveness of both EVs and NZEBs — retail finance.

Retail Finance Can Improve Affordability, Awareness, and Adoption

Retail finance is a key driver of economic growth. Access to credit (in the form of mortgages and loans) has made homes and vehicles more affordable, enabling millions of first-time buyers.

In March 2021, the outstanding housing loans in India amounted to US$298 billion and vehicle loans to US$61.7 billion. Retail banking overall forms a fifth of all bank credits (not including the non-banking financial companies or NBFCs). This large market size is indicative of the influence that financial institutions (FIs) can have on transitioning India’s vehicle and housing stock to greener alternatives.

Dedicated “green” loans or mortgages with affordable interest rates and long tenures can help borrowers spread cost premiums across time. Lower operational costs of EVs or NZEBs improve the ability of the borrower to afford equated monthly installments. This reduces the probability of default, creating a win-win scenario for both the FI and the borrower.

The mortgage example structure in Exhibit 1 shows how a green building can make ownership affordable for the borrower while realizing higher incomes for a bank. Longer tenures can be even more advantageous for both.

Exhibit 1: Green mortgage illustrative example for first year (in $). Source: Modified from IFC, 2019

Affordability is only part of the possible impact. FIs also have the potential to enhance consumer awareness. Commercial banks and NBFCs are in regular contact with individuals interested in purchasing new assets. This channel can be instrumental in communicating the financial benefits of EVs or NZEBs and busting myths on ownership. The resulting behavioral change on purchase decisions has the potential of raising the aspirational value and desirability of green assets. Hence, by improving affordability and awareness, FIs can help scale adoption.

Solutions Exist but Risks Need to Be Overcome

Dedicated green loans and mortgages are not new inventions. In India, too, a few forward-thinking FIs have started developing these products. For example, the State Bank of India has launched a Green Car Loan, whereas the National Housing Bank’s SUNREF India program is facilitating affordable green housing credit worth ₹800 crore (US$107 million) in India.

Replicating such products across the retail finance ecosystem requires us to consider current barriers. Unique challenges exist: For EVs, the lack of secondary market is a concern. Meanwhile for NZEBs, developers lack incentives to construct property where operational benefits will pass on to the occupant. However, many risks are common. In both cases, unproven asset value, low awareness of techno-economics, and an uncertain policy environment are seen to be holding back finance.

Moving forward, overcoming these barriers will be important for unlocking the opportunity inherent in greening retail finance. Building the capacity of FIs for developments in EVs and NZEBs will be needed to maximize the potential of dedicated loan or mortgage products. Another common area that needs to be prioritized is data availability on loan performance of EVs and NZEBs. To this end, the Reserve Bank of India (RBI) can designate green assets such as EVs and NZEBs as financial reporting sub-sectors.

Also, the RBI can consider the creation of a sustainable finance taxonomy by setting baselines and definitions for green assets. This will help develop insights into existing green financial products and direct finance to the most effective technologies.

The vehicle and housing finance industries can simultaneously learn from each other. For example, the Government of India’s Partial Risk Sharing Facility for Energy Efficiency is a promising instrument enabling FIs to lend to energy-efficient projects. Risks of financing energy service companies wishing to retrofit buildings are partially covered under this facility, reducing overall transaction costs. Such risk-sharing programs need to be introduced for EVs as well to improve the lending confidence of FIs.

For EVs, partnerships between FIs and manufacturers help mainstream low-cost financing. Developer-FI partnerships for net-zero energy housing similarly need to be scaled. IIFL Home Finance is an FI already piloting green certification and lending programs with local developers in Indian cities. Providing technical assistance and data-driven support to the value chain is helping develop a pipeline of NZEBs.

Governments can enable more such partnerships by offering interest rate subventions, stamp duty reductions, and incentives for longer tenures. Creating a shared roadmap for the development of NZEBs will additionally provide direction to the entire ecosystem.

Financial Institutions that Take the Lead, Can Reap the Rewards

For EVs alone, the cumulative capital investment required by the end of the decade could be as much as  US$266 billion (see Exhibit 2). This translates to a loan market of US$50 billion in 2030. Similarly, estimates suggest a US$1.25 trillion investment opportunity in green housing by 2030. FIs that champion green loans and mortgages and proactively enable the market stand to gain the most in these scenarios.

Exhibit 2: Cumulative capital cost of India’s EV transition, 2020–2030, including EVs, batteries, and electric vehicle supply equipment. Source: NITI Aayog and RMI, 2021

Energy transition-related risks will also make EVs or NZEBs more worthwhile to lend to in the near-term. Many of the gas/diesel vehicles that FIs are financing today will start to lose their value as the upfront cost of EVs decreases, emission norms are tightened, and fuel prices increase.

Similarly, as the Energy Conservation Building Code for residential buildings is notified across India and incentive structures are enhanced, the possibility of stranded real estate assets may increase. Resilience and energy cost volatility risks should also be considered.

The RBI has already begun to commit to climate action: in April 2021, it joined the Network for Greening the Financial System, a green finance coalition for central banks. This commitment signals the inevitability of green finance in India, of which green lending will be an essential part. Most recently, the Climate Finance Leadership Initiative’s launch in India is demonstrative of the financial potential to accelerate mass consumer adoption of green assets such as EVs and NZEBs, leading the country closer to Paris Agreement goals. With the stage being set, now retail finance must step up.

Featured image courtesy of Blu Smart, Move for Change.

Ready for a better ride? Join the #BluRevolution and help us improve the quality of life in megacities of India.

 

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Save $483 on Jetson Canyon electric scooter from $417, portable pellet grill now $251, more

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Save 3 on Jetson Canyon electric scooter from 7, portable pellet grill now 1, more

Spring joyrides are now just as affordable as they are fun, as today’s best deals come headlined by the Jetson Canyon Folding Electric Scooter starting at $417. You can also take a more environmentally-friendly approach to cookouts this spring with this portable Z GRILLS Pellet Grill and Smoker at $251, while getting your yard in shape for get-togethers with a collection of discounted Sun Joe electric tools. Plus, all of the other best new Green Deals landing this week.

Head below for other New Green Deals we’ve found today and, of course, Electrek’s best EV buying and leasing deals. Also, check out the new Electrek Tesla Shop for the best deals on Tesla accessories.

Save up to $483 on the Jetson Canyon Folding Electric Scooter starting from $417

Amazon is offering the Jetson Canyon Folding Electric Scooter with two varying discounts based on location, the first of which falls to $417.28 shippedafter clipping the on-page 20% off coupon – and the second falling to $495.52 shippedafter clipping the on-page 5% off coupon. Already down from its $900 MSRP, this is only the fifth discount we have tracked over the course of the last year and comes in as a 54% or 45% markdown off the going rate, saving you a whopping $483 to $404 off the MSRP. You won’t be able to find this particular model on the manufacturer’s website anymore either, as it has been retired since December, but when it was available it was last listed at its MSRP. 

Equipped with a 500W motor and a 48V lithium-ion battery, the Jetson Canyon escooter is able to reach top speeds of 15.5 MPH and travel up to 22 miles on a single charge. It comes with three speed modes (up to 3 MPH, up to 10 MPH, and up to 15.5 MPH) that can be controlled via the LCD display that also gives you real-time information on your speed, battery levels, and headlight status. Like many other models of electric scooters, this one features a folding design that makes it far easier to store or transport when you’re not using it.

Z GRILLS CRUISER 200A Pro Portable Pellet Grill and Smoker hits $251

Amazon is offering the Z GRILLS CRUISER 200A Pro Portable Pellet Grill and Smoker for $251.10 shipped. Down from $322, with a higher $335 MSRP, it has seen very few discounts since its release in February 2023, with the biggest of the past year dropping costs to a $215 low. Today’s deal comes in as a 25% markdown off the going rate and lands as the third-lowest price we have tracked – just $36 above the all-time low.

This portable grill and smoker sports a more compact design than other models under the Z GRILLS brand, only measuring 25 inches by 20 inches by 13 inches that makes it easy to transport, set up, break down, and clean – all on the go. It utilizes wood pellets as a fuel source for maximum flavor and reduced emissions lower than that of charcoal. Equipped with upgraded PID controls, this device keeps between its 180-degree to 450-degree temperature range for 8-in-1 functionality: grill, smoke, bake, roast, sear, braise, barbecue, and char-grill. It has 202 square-inches of cooking space that holds up to six burgers, 11 hotdogs, or one full rack of ribs at once – even including a meat probe so you won’t have to sit around babysitting your food as it cooks.

Sun Joe SPX3000 2,030 PSI Electric Pressure Washer now $129

Amazon is offering the Sun Joe SPX3000 14.5A 2,030 PSI Electric Pressure Washer for $129 shipped. It has spent the last year at or returning to $169, with the second half of 2023 seeing regular discounts, but never down farther than $159 – except for a short-lived drop to $110 in October during Prime Deals days. Since 2024 began, we’ve seen the same recurring discount to $129, with today’s deal coming in to repeat the trend as a 24% markdown off the going rate and returning costs to the fourth-lowest price we have tracked – $34 above the all-time low from 2022. Equipped with a 1,800W motor, this electric pressure washer is able to produce a 2023 max PSI and 1.76 GPM. It features two 0.9L onboard detergent tanks to better tackle cleaning projects, as well as Sun Joe’s total stop system that automatically shuts off the pump when the trigger is not engaged to conserve water and costs. It comes with five interchangeable nozzles: zero degrees, 15 degrees, 25 degrees, 40 degrees, and a special soap nozzle.

Spring e-bike deals!

AeroGarden Sprout 3-plant indoor garden from two angles

Other new Green Deals landing this week

The savings this week are also continuing to a collection of other markdowns. To the same tune as the offers above, these all help you take a more energy-conscious approach to your routine. Winter means you can lock in even better off-season price cuts on electric tools for the lawn while saving on EVs and tons of other gear.

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GM in talks with CATL to license cheaper LFP EV battery tech and joint North American plant

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GM in talks with CATL to license cheaper LFP EV battery tech and joint North American plant

General Motors (GM) is reportedly in talks with battery giant CATL to license its cheaper LFP battery tech. The plans could include a new joint North American plant to produce the new batteries.

After software glitches, freight delays, and other issues caused GM to miss its EV sales target in 2023, the company believes “production hell” is behind it.

CEO Mary Barra claims 2024 will be “the year of execution” as the automaker looks to get back on track.

GM is ramping up production of its Ultium-based models after it “turned the corner” at its battery factory in Detroit. With several new Chevy EVs rolling out this year, including the Blazer EV, Equinox EV, and Silverado EV, GM looks to build 200,000 to 300,000 Ultium EVs this year.

That would be around 20 times more than the fewer than 14,000 units sold last year. GM is also retiring its best-selling Chevy Bolt, at least in its current form.

With 62,045 Chevy Bolts sold last year, the electric car accounted for over 81% of GM’s EV sales. Barra confirmed GM will launch an Ultium-based Bolt EV next year.

Chevy-Bolt-EV
Chevy Bolt (Source: GM)

It will offer “an even better driving, charging, and ownership experience.” According to Barra, it will be the first Ultium EV in North America to feature LFP batteries.

GM looks to CATL for cheaper LFP battery tech

According to a new report from CarNewsChina, GM is in talks with CATL to license its LFP battery tech. The plans also reportedly include building a joint North American factory to make the batteries.

Details are scarce, but the plant will likely be in the US or Mexico. It will be similar to the agreement between CATL and rival Ford. Ford announced a $3.5 billion investment last February to build a new LFP plant (BlueOval Battery Park Michigan).

Chevy-Blazer-EV-prices
2024 Chevy Blazer EV (Source: GM)

The plant is expected to begin producing LFP batteries in 2026 to power Ford’s next-gen EVs. Ford reached an agreement with CATL to license its LFP battery tech. The American automaker will manufacture the cells with knowledge from CATL.

Under the GM deal, CATL would be responsible for building the production lines, supply chains, and other equipment while GM handles the CapEx.

GM's-new-Bolt-EV
2023 Chevrolet Bolt EUV Redline Edition (Source: GM)

GM CFO Paul Jacobson said the new Bolt EV will save the company billions by using LFP batteries.

Both automakers look to sidestep federal regulations requiring EV batteries to be produced in North America to qualify for a tax credit.

Electrek’s Take

If true, the news could be significant. For one, South Korean and Japanese battery makers dominate the North American market, with LG, Samsung SDI, SK, and Panasonic controlling 80% of the market.

However, these battery makers have largely missed the opportunity with LFP batteries while China’s CATL and BYD took control of the market. LFP batteries are cheaper to produce which could give automakers an advantage going forward.

Several automakers, including Ford and GM, have announced plans to introduce more affordable EVs as demand for lower-cost electric options climbs.

The Late Post claims CATL has reduced the cost of its batteries to 400 yuan ($55) per kWh, compared to 600 yuan ($83) per kWh with NCM batteries. This could translate to significant savings as American automakers look to cut costs and break even with EVs.

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A dealership marked up a Hyundai IONIQ 5 N’s price by $20k

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A dealership marked up a Hyundai IONIQ 5 N's price by k

Hyundai just released the IONIQ 5 N’s price just a couple weeks ago, and a California dealer has already marked the MSRP up on the automaker’s newest, most powerful EV by $20,000.

Redditor u/Qball1754 wrote in a post on the r/Ioniq5 subreddit yesterday that he’s a Hyundai influencer and the owner of a Veloster N. Hyundai told him that Ontario Hyundai in California had the IONIQ 5 N in its possession, so he went to the dealership to buy it and was greeted by an eye-watering markup of $20,000, which took the price from $67,685 to $87,685:

Here’s what u/Qball1754 – aka David De Rigo, according to his Instagram account – had to say on Reddit:

First off, my sales person was super nice and pushed hard to work something out. Aside from that my experience wasn’t the best, there’s a 20k markup that is non-negotiable and was told corporate made the decision on it since it was delivered like that (I don’t buy it) Other dealerships are gonna charge a higher markup on the car from what I was told as it’s an “exotic” Hyundai will not do a lease for the car or any EV credit and finance only. Sales/finance manager were really disrespectful over pricing and me knowing about their allocations and being an Nfluencer.

Electrek’s Take

The IONIQ 5 N is a serious performance vehicle. Its dual electric motors can deliver up to 641 horsepower (478 kW) from an 84 kWh battery and achieve 0-60 mph in an unbelievable 3.25 seconds. But is it “exotic” enough to justify a $20k markup?

It’s only worth what someone is willing to pay for it, and the dealership is going for the “don’t ask, don’t get” approach. But it sounds like they threw up all sorts of arbitrary conditions and rules. Way to sell cars and build your reputation, folks – especially with an “Nfluencer.”

Click here to find a local dealer that may have the Hyundai IONIQ 5 in stock.–ad*


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